DoD's $21.7M Grocery Resale Contract with Conagra Foods Lacked Competition
Contract Overview
Contract Amount: $21,747,761 ($21.7M)
Contractor: Conagra Foods Packaged Foods C
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2009-12-31
Contract Duration: 91 days
Daily Burn Rate: $239.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RESALE - ASSORTED GROCERY
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68102
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to CONAGRA FOODS PACKAGED FOODS C for work described as: RESALE - ASSORTED GROCERY Key points: 1. Significant spending on assorted groceries highlights the importance of food supply chains for military personnel. 2. The contract's value suggests a substantial volume of goods, impacting the food wholesale sector. 3. Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars. 4. The 'General Line Grocery Merchant Wholesalers' category indicates a broad range of food products were procured.
Value Assessment
Rating: questionable
The contract value of $21.7M for assorted groceries is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar wholesale grocery contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competitive bidding likely hindered price discovery and may have resulted in a higher overall cost.
Taxpayer Impact: The absence of competition on a $21.7M contract means taxpayers may have paid more than necessary for these grocery items.
Public Impact
Military families and personnel benefit from commissary services, which are supported by such contracts. The procurement impacts the broader food distribution and wholesale industry, particularly in Nebraska. Ensuring fair pricing on essential goods like groceries is crucial for maintaining morale and efficient resource allocation within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
Positive Signals
- Supports military personnel and families
- Procurement of essential goods
Sector Analysis
This contract falls under the wholesale grocery sector, supplying essential food items. Spending benchmarks for similar large-scale grocery wholesale contracts are typically driven by volume, product mix, and logistical efficiency.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor, Conagra Foods, is a large corporation, suggesting limited direct impact or opportunity for small businesses in this particular award.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further review to understand the justification and ensure appropriate oversight was applied. Regular audits of pricing and performance would be essential for accountability.
Related Government Programs
- General Line Grocery Merchant Wholesalers
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- No apparent small business participation
Tags
general-line-grocery-merchant-wholesaler, department-of-defense, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to CONAGRA FOODS PACKAGED FOODS C. RESALE - ASSORTED GROCERY
Who is the contractor on this award?
The obligated recipient is CONAGRA FOODS PACKAGED FOODS C.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2009-10-01. End: 2009-12-31.
What was the specific justification for not competing this large grocery resale contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would be needed to determine the official justification, which could range from urgent need to specific product requirements or existing vendor relationships. Understanding this rationale is key to assessing if the limited competition was appropriate or if it represented a missed opportunity for better value.
How does the $21.7M price compare to market rates for similar wholesale grocery provisions?
Without competitive bids, a direct comparison to market rates is challenging. However, the 'fair' rating suggests that while not competitively bid, the price might be within an acceptable range based on internal benchmarks or historical data. A deeper analysis would involve benchmarking against publicly available wholesale grocery pricing indices or similar government contracts awarded through full and open competition.
What is the long-term impact of non-competitive awards on the efficiency of the Defense Commissary Agency's supply chain?
Non-competitive awards, especially for significant amounts like $21.7M, can reduce pressure on vendors to offer the most competitive prices, potentially leading to higher costs over time. This can impact the overall efficiency and budget of the Defense Commissary Agency. Sustained reliance on limited competition may also stifle innovation and discourage new, potentially more cost-effective suppliers from entering the market.
Industry Classification
NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery Merchant Wholesalers
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 CONAGRA DR, OMAHA, NE, 68102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,747,761
Exercised Options: $21,747,761
Current Obligation: $21,747,761
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDEC0105G3356
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2019-06-07
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